As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the data infrastructure industry, including Teradata (NYSE:TDC) and its peers.
Generating insights from system level data is an increasing priority for most businesses, but to do so requires connecting and analyzing piles of data stored and siloed in separate databases. This is the demand driver for cloud based data infrastructure software providers, who can more readily integrate, distribute and process information vs. legacy on-premise software providers.
The 4 data infrastructure stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.5% while next quarter’s revenue guidance was in line.
Thankfully, share prices of the companies have been resilient as they are up 6.1% on average since the latest earnings results.
Weakest Q3: Teradata (NYSE:TDC)
Part of point-of-sale and ATM company NCR from 1991 to 2007, Teradata (NYSE:TDC) offers a software-as-service platform that helps organizations manage their data across multiple storages and analyze it.Teradata reported revenues of $440 million, flat year on year. This print exceeded analysts’ expectations by 1.6%. Overall, it was a satisfactory quarter for the company with full-year EPS guidance exceeding analysts’ expectations.
“In the third quarter, we grew our cloud business, delivered innovations that strengthen our market position, and added new customers and partners. We are seeing customers increasingly leverage our hybrid capabilities as they transform and commit to Teradata for the long term,” said Steve McMillan, President and Chief Executive Officer, Teradata.
Teradata delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Unsurprisingly, the stock is down 7.8% since reporting and currently trades at $30.80.
Is now the time to buy Teradata? Find out by reading the original article on StockStory, it’s free.
Best Q3: Elastic (NYSE:ESTC)
Started by Shay Banon as a search engine for his wife's growing list of recipes at Le Cordon Bleu cooking school in Paris, Elastic (NYSE:ESTC) helps companies integrate search into their products and monitor their cloud infrastructure.Elastic reported revenues of $365.4 million, up 17.6% year on year, outperforming analysts’ expectations by 3.1%. The business had a strong quarter with a solid beat of analysts’ billings estimates and EPS guidance for the next quarter exceeding analysts’ expectations.
The market seems happy with the results as the stock is up 21.4% since reporting. It currently trades at $114.41.
C3.ai (NYSE:AI)
Founded in 2009 by enterprise software veteran Tom Seibel, C3.ai (NYSE:AI) provides software that makes it easy for organizations to add artificial intelligence technology to their applications.C3.ai reported revenues of $94.34 million, up 28.8% year on year, exceeding analysts’ expectations by 3.4%. It may have had the worst quarter among its peers, but its results were still good as it also locked in a solid beat of analysts’ EBITDA estimates and full-year revenue guidance slightly topping analysts’ expectations.
As expected, the stock is down 19.3% since the results and currently trades at $33.74.
Confluent (NASDAQ:CFLT)
Started in 2014 by the team of engineers at LinkedIn who originally built it as an internal tool, Confluent (NASDAQ:CFLT) provides infrastructure software for organizations that makes it easy and fast to collect and move large amounts of data between different systems.Confluent reported revenues of $250.2 million, up 25% year on year. This number topped analysts’ expectations by 2.1%. It was a strong quarter as it also logged a solid beat of analysts’ billings estimates and an impressive beat of analysts’ EBITDA estimates.
The company added 40 enterprise customers paying more than $100,000 annually to reach a total of 1,346. The stock is up 30% since reporting and currently trades at $30.
Want to invest in winners with rock-solid fundamentals? Check out our and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
This content was originally published on Stock Story
TDC) Vs The Rest Of The Data Infrastructure Stocks">